Minimum wage in Madagascar

Before recruiting a new employee, it’s essential to simulate hiring costs in order to fine-tune the company’s development plan.

Wage-related costs play a key role in calculating hiring costs. For the private sector, both the employee and the employer are free to set the base wage, subject to compliance with the regulations in force. Hence the “Minimum Hiring Wage” applied in the country.

Minimum wage definition

The minimum wage was created by the government to define the minimum remuneration for workers in Madagascar. By definition, it is the legal minimum wage that an employee must receive in Madagascar.

Revalued generally every year by decree, by the Ministry of Labor, Employment, Public Service and Social Laws, the minimum wage will evolve according to the cost of living, inflation and the current economic situation.

Decree implementing the Minimum Hiring Wage

According to the minutes of the Council of Ministers, the “minimum monthly remuneration” in Madagascar, which includes the Minimum Wage (SME) and salary accessories, will increase from Ar 238,000 to Ar 262,680 in the non-agricultural sector and from Ar 242,200 to Ar 266,500 in the agricultural sector. The increase is to take effect on March 1, 2024, for a total amount of Ariary 250,000 Ariary.

Professional categories are classified by profile and divided into 5 groups in accordance with Decree N°2007-009.

In addition, non-category” managers, for their part, will have to rely on their company’s salary policy.

Date of application of the Minimum Wage

In many cases, the decree on the Minimum Hiring Wage is promulgated a few weeks after its application date. However, it must be applied from the date indicated in the decree, and adjusted in the event of a subsequent revaluation.

To help you recruit your future employees, MDG Services can provide you with an employer cost simulator that will enable you to estimate the related cost for your company based in Madagascar.

As for HR management, MDG Services will handle your payroll, hiring and firing, and payroll declarations.

We also offer a staffing option that guarantees the availability of dedicated resources.

For more information on our HRM outsourcing services or to request a quote, please contact us.

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